Why not wait?

One acknowledged investment strategy for market timing is to stay with the major trend.  A problem with this method lies in the execution.  Can the individual investor "pull the trigger" at the right time? An interesting example occurred on January 3, 2001.  The Greenspan Fed surprised the market.  Here is the report from the next […]

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The Big Mistake: A Compelling Example

Take a look at this interesting example: "Imagine that you had encountered Warren Buffett at the end of 1975. Impressed with his intellect and investment approach, you would have naturally examined his track record — and almost certainly, to your everlasting regret, not invested. Why? Because his results, as measured by the stock price of […]

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The Biggest Investor Mistake

For most people, the information in today’s post is probably more important than any other single fact they can learn about investing.  Understanding and following this advice could make a million-dollar difference for a middle-class family thinking about college and retirement. The problem is that the advice is extremely difficult to follow.  Since very few […]

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Warren Buffett on Market Efficiency

Warren Buffett is generally acknowledged as the world’s greatest investor.  He has gotten a lot of well-deserved publicity this week for his plan to give away most of his wealth. Spending some time thinking about his success is a good exercise for anyone interested in markets or investing.  Janet Lowe’s book collecting useful wisdom is […]

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Markets are not (very) efficient

In my years as a college professor, I had more than a passing acquaintance with general investment theory.  I was interested in the subject, and did well with my personal account.  Despite this success, I believed that markets were efficient.  The Efficient Market Hypothesis had gained credence in academic circles, was taught in classrooms, and […]

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